BUSINESSES need to celebrate their contribution to the local economy as they are vital for growth and jobs, according to one of Britain’s foremost experts.

Former director general of the British Chamber of Commerce, David Frost – who stepped down from his position just two weeks ago – made his comments at the Coventry and Warwickshire Chamber of Commerce annual conference last week.

Mr Frost told a packed room at the Coventry TechnoCentre that it is vital for government to focus on rebuilding businesses because without a successful private sector the UK will not benefit from good public services, including improved schools and hospitals.

He said: “We need to celebrate the contribution that business makes to the economy. Businesses are not looking for hand-outs, they are looking for government to get out of the way so they can get on with growing and recruiting.

“Business is a positive force as good businesses create wealth and jobs. Government really needs to focus on growth.”

Mr Frost, who was one of the keynote speakers at the 10th Annual Economic and Business Conference, said he wasn’t surprised by the challenging economic climate.

He added: “It was too good to be true for too long. When you turned on the television and saw someone in their 20s talking about their buy-to-let project and people taking large amounts of equity out of their homes to buy the latest Range Rover, you knew that something was going to happen.

“And now, quite frankly, we are left with one hell of a hangover which will take some time to sort out.”

Mr Frost then laid out four key issues which need addressing to help rebuild the economy, including making it easier for business to recruit more workers, keeping business investment flowing, rebalancing exports and carrying out planning reforms.

“What we do know from all the evidence is that government employment legislation is putting people off recruiting,” said Mr Frost, as the latest UK unemployment figures surged beyond 2.5million.

“Businesses are also worried that if they make a simple mistake they will get taken to an employment tribunal. A big reform on employment legislation is needed and we should start to question ‘do we really need employment tribunals’.”

Mr Frost also highlighted the worrying issue of youth unemployment after recent figures showed that over a million young people are out of work.

He suggested the option of transferring Jobseekers’ Allowance to employers as an incentive to take on staff.

He argued that we need to focus on the role of the banks claiming there was too much focus on them being ‘key components of the country’ and Mr Frost highlighted the urgent need to get the export market growing.

“The fourth issue, which I believe is key at the moment is planning, government needs to drive through these reforms. Businesses across the country have development projects lined up and ready to go but they can’t because they are stuck in the planning system.

“We need to somehow unblock this system, which will kick-start construction.”

But Mr Frost did congratulate the government for introducing the new Enterprise Zones, which he believes will help grow and develop the UK.